Italy's Enel eyes purchase of more Brazil assets after dam deal

Luciano Costa

SAO PAULO (Reuters) - Italy's Enel SpA is looking for opportunities to expand in Brazil's power sector through acquisitions after winning a license last week to operate a large hydropower dam, the head of local operations told Reuters.

The Italian utility was weighing whether to bid for some regional distribution firms that are up for sale, said Carlo Zorzoli, Enel's senior country officer in Brazil.

"Of course we are going to look at these concessions, because they are growth opportunities, and we are in a stage where we are weighing all opportunities to expand," he said in an interview late on Friday.

State-controlled Centrais Elétricas Brasileiras SA, known as Eletrobras, wants to sell six of its power distribution companies later this year or early next year for what sources have said will be a token amount.

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"We are active in the market, choosing the opportunities that best fit our strategy," Zorzoli said.

Brazil's power sector is going through a process of consolidation, with many local players putting assets up for sale to cut debt at a time of tight credit.